Page 1 - The NY Cooperator August 2020
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August 2020                                             COOPERATOR.COM  continued on page 6   claims from COVID-19 and any future pandemics, the actuaries will   have to figure out what such new variables mean in terms of risk expo-  sure—and, by extension, coverage options.   “Many carriers took the experiences of the SARS and ebola \\\[out-  breaks\\\] and used them to write some verbiage into policies, so that in-  sureds and insurers would be clear on coverage,” says Fleming. “Now,   other carriers that were a little less aggressive in their verbiage are going   continued on page 6   Residential communities such as co-  ops, condos, and HOAs are unique in   that they take the governance of their   properties into their own hands. While   most properties do have managing   agents to oversee staff and to handle the   day-to-day operations, ultimately, it’s the   board of directors or trustees that makes   policy and determines the continuing   health of the community. Board posi-  tions are filled by unit owner or share-  holder volunteers—the positions are   almost universally unpaid. Community   members give of their time and exper-  tise freely, and with the intent to do their   ‘civic’ duty and protect the investment of   themselves and their neighbors.  Often,  residents  with  specific  skills   relevant to governing  and  managing   property are ready, willing, and able to   contribute their knowledge to the com-  munity. Boards often feature a concen-  tration  of  attorneys,  accountants,  and   business management professionals. But   even these competent individuals still   have much to learn and absorb when   they are  elected  to  the  board.  Every   building and community has a history   and a set of circumstances all its own.   That’s a compelling thing about real es-  tate: every property is unique.   So how should new board members   get, well, onboarded? Should they take   a course through the Community Asso-  ciations Institute (CAI) or some similar   local support organization for multifam-  ily boards? Should building management   or the building’s attorney and accountant   hold an orientation to bring them up to   speed? Should an existing board member   mentor a new member and debrief them   By its very definition, insurance coverage is planned protection against both the expected   and the unexpected. Life insurance clearly provides financial security in the event of death,   which of course is an eventual certainty. But at the same time, it also provides for circumstances   in which someone’s passing is early or sudden. On the other hand, something like flood insur-  ance provides protection against a ‘known unknown’—a potential threat that can be prepared   for to some degree through intelligent analysis of risk. As such, insurance is a generally ac-  cepted method of handling potential risk in the business world. Pay a little now, and get what   you need to cover the cost of the unexpected later, when and if you need it. Co-op, condo, and   HOA properties and owners are well acquainted with this business practice and carry several   types of insurance to cover all kinds of possible emergencies. So… how does that shake out in   the current COVID-19 crisis?  Responding to the Unknown  While  insurance policies  are forward-facing—meaning  they attempt to  manage future   risk—they are based on past data, such as how probable similar events were in the past, and   how past experience can help us manage the same or similar circumstances in the future. How-  ever, when it comes to something as unprecedented as the current pandemic, insurance carri-  ers are in new and uncertain territory—often to the detriment of those looking for coverage.   Ryan Fleming is a partner at JSG Insurance, with offices throughout the Northeast. He ex-  plains, “Insurance policies in general aren’t designed to respond to something like this. It’s trig-  gered by a sudden, accidental, unexpected occurrence. In this case, with this type of pandemic   growth, policies aren’t really designed to cope with it.”   Insurance actuaries—the statistical scientists who calculate and interpret risk on behalf of   insurance companies to help them set premiums and determine the extent (and limits) of cov-  erage—calibrate new crises into risk analysis going forward. As carriers re-evaluate potential   Whether you live in a super-luxe Park   Avenue co-op in New York City, a beach-  front condo in Florida, a sprawling HOA   in  Nevada,  or  a  multifamily  community   in the Berkshires, one thing is certain: you   have neighbors. Hopefully they’re the peo-  ple you grill with on a summer afternoon;   the providers of a spare cup of sugar when   you run out;  the folks  who water your   plants when you leave town … some even   might have attended your child’s wedding   or helped you through trying times. But re-  gardless of the size, location, or overall co-  hesion of your community, at some point   you’re likely to have at least one neighbor   who disrupts the harmony and infringes   on the peaceful enjoyment of your home.    While most of us in multifamily hous-  ing have come to accept this inevitabil-  ity as a cost of communal living, there are   some situations that cross the line from   minor nuisance to legitimate harassment.   Knowing the difference is important—but   it can be tricky to discern, and even more   difficult to address. After all, ‘harassment’   is a term that gets thrown around a lot,   but is often a subjective disputation. One   person’s ‘persistence’ or style of conflict   management can be another’s criminal   complaint.    Harassment: Difficult to Identify,   Harder to Prove  Adding to the interpersonal complex-  ity, the legal system deals with harassment   in different ways, depending on where you   reside and the type of harassment being al-  leged. Laws on harassment vary by state,   and levels of criminality can differ within   those jurisdictions.   In New York State, for example, accord-  ing to several attorneys consulted for this   article, there is no civil cause of action for   harassment. That means that any action   taken against an accused harasser must be   pursued as a criminal case. Depending on   a number of factors, the harassment can be   prosecuted as a misdemeanor, a violation,   or a felony.   Under New York’s Human Rights Law,   Insurance Coverage vs.   COVID-19  Co-ops & HOAs May Be Left Holding the Bag  BY A.J. SIDRANSKY  Handling   Harassment in   Multifamily Housing  When Trash Talk    Turns to Transgression  BY DARCEY GERSTEIN  What New Board   Members Need   to Know   (And How to Learn It)  BY A.J. SIDRANSKY  205 Lexington Avenue, NY, NY 10016 • CHANGE SERVICE REQUESTED  continued on page 7 


































































































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